Disney, Tesco Build Co-Branding Alliance

NEW YORK–Walt Disney and Tesco, the leading supermarket chain in Great Britain, are negotiating a deal to open Disney-branded play areas in many of the retailer’s 600-plus stores. In addition, more than 500,000 Tesco shoppers are now receiving direct mail information regarding a Disney/Tesco Kids’ Club, which would include discount coupons for Tesco and Disney products. Also included is a subscription to WOW! magazine, which has been created exclusively by Disney for Tesco, plus access to a related Web site.

The campaign is being handled by ehsrealtime marketing and media agency, London.

“It’s a great way to maintain communication with our customers once their children are past the baby and toddler stages,” said Tesco marketing director Tim Mason, who says the target audience is parents of kids aged 5-8. “Our focus is on meeting the expectations of our customers and working with Disney allows us to do that.”

Tesco may also use the relationship to further develop its entry into the U.S. In June, Tesco paid $35 million to purchase about 35 percent of Safeway’s on-line shopping division.